Stock Traders Purchase High Volume of Embraer Put Options (ERJ)

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Embraer SA (NYSE:ERJ) saw some unusual options trading on Wednesday. Stock traders bought 2,241 put options on the stock. This is an increase of 3,764% compared to the typical daily volume of 58 put options.

A number of large investors have recently made changes to their positions in the business. Cedar Wealth Management LLC raised its stake in shares of Embraer by 5,730.0% in the third quarter. Cedar Wealth Management LLC now owns 5,830 shares of the aerospace company’s stock worth $114,000 after buying an additional 5,730 shares during the period. TD Asset Management Inc. bought a new stake in Embraer during the 2nd quarter valued at approximately $208,000. PNC Financial Services Group Inc. raised its stake in Embraer by 71.3% during the 3rd quarter. PNC Financial Services Group Inc. now owns 9,027 shares of the aerospace company’s stock valued at $177,000 after purchasing an additional 3,756 shares during the period. Holistic Financial Partners bought a new stake in Embraer during the 3rd quarter valued at approximately $207,000. Finally, Harel Insurance Investments & Financial Services Ltd. raised its stake in Embraer by 66.5% during the 2nd quarter. Harel Insurance Investments & Financial Services Ltd. now owns 11,763 shares of the aerospace company’s stock valued at $293,000 after purchasing an additional 4,700 shares during the period. 47.59% of the stock is currently owned by institutional investors and hedge funds.

Several research firms recently commented on ERJ. ValuEngine raised Embraer from a “buy” rating to a “strong-buy” rating in a research report on Thursday, November 1st. Cowen reaffirmed a “hold” rating and set a $28.00 price objective on shares of Embraer in a research report on Tuesday, October 30th. Sanford C. Bernstein cut Embraer from a “market perform” rating to an “underperform” rating in a research report on Monday, October 1st. Bradesco Corretora raised Embraer from a “neutral” rating to a “buy” rating and increased their price objective for the company from $23.00 to $28.00 in a research report on Wednesday, September 26th. Finally, Citigroup raised Embraer to an “outperform” rating and increased their price objective for the company from $23.00 to $28.00 in a research report on Wednesday, September 26th. Two investment analysts have rated the stock with a sell rating, six have given a hold rating, five have given a buy rating and one has issued a strong buy rating to the stock. Embraer has a consensus rating of “Hold” and a consensus price target of $27.13.

NYSE:ERJ traded down $0.05 on Friday, hitting $21.88. The stock had a trading volume of 952,596 shares, compared to its average volume of 1,188,869. The stock has a market capitalization of $4.22 billion, a price-to-earnings ratio of 14.39, a PEG ratio of 21.18 and a beta of -0.09. The company has a debt-to-equity ratio of 0.94, a quick ratio of 1.29 and a current ratio of 2.13. Embraer has a 52-week low of $17.99 and a 52-week high of $28.55.

The company also recently announced a special dividend, which was paid on Thursday, October 18th. Shareholders of record on Thursday, September 27th were given a $0.0095 dividend. The ex-dividend date of this dividend was Wednesday, September 26th. This represents a yield of 0.11%. Embraer’s payout ratio is 13.16%.

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About Embraer

Embraer SA designs, develops, manufactures, and sells aircraft and systems in Brazil, North America, Latin America, the Asia Pacific, Europe, and internationally. It operates through Commercial Aviation, Defense and Security, Executive Jets, and Other Related Businesses segments. The Commercial Aviation segment develops, produces, and sells commercial jets; and provides support services, as well as leases aircraft.

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